Risky Mortgages in a DSGE Model

Discussion of “Risky Mortgages in a DSGE Model”

This is an interesting paper on a timely topic. As the authors argue, the recent global financial crisis has its roots in increased mortgage delinquencies caused by the bursting of the housing bubble in the United States. By what mechanism does such an increase in mortgage delinquencies affect the rest of the economy? And how should policy react to it? To address these issues, the authors devel...

Subprime Outcomes: Risky Mortgages, Homeownership Experiences, and Foreclosures

Agricultural Economic Dynamics in a Bayesian DSGE Model for Iran

I ran’s economy is suffering from sharp and persistent economic shocks and agriculture plays an undeniable role in its economic growth and development. The aim of this paper is to study the relative contributions of various macroeconomic shocks to generating fluctuations in Iran’s agriculture sector. To do so, a Dynamic Stochastic General Equilibrium (DSGE) model, emphasizing on the ...

Model Validation and DSGE Modeling

The primary objective of this paper is to revisit DSGE models with a view to appraise their statistical adequacy and propose ways to ameliorate their empirical pertinence. This paper brings out several weaknesses of the traditional DSGE modeling, including statistical misspecification, non-identification of deep parameters, substantive inadequacy, weak forecasting performance and potentially mi...

A Treatise on Mortgages